Research On Cultural Integration For Chinese Enterprises In Cross-border M&A

Corporate merger and acquisition is an important way for an enterprise to enlarge its operation scale and increase its competitive strength. However, a great quantity of M&A has not produced the due effect. Abroad investigation and research are indicated that merged enterprises'value coming down dues to the difficult problem of cultural integration facing in the process of M&A. Comparing with domestic M&A cross-border M&A faces bigger challenge of cultural integration. And cross-cultural integration is the key factor for an enterprise to succeed in cross-border M&A.In recent years, a large number of Chinese enterprises have actively participated in the cross-border M&A and have gradually become an active member among the whole world. With the realities of cross-border M&A for Chinese enterprises, this thesis makes thorough study on cross-cultural integration for our enterprises in order to achieve the goal that guides its practice.The thesis firstly introduces the related concepts of cross-border M&A and cultural integration, then based on many scholars'researches and mainly aimed at practice of Chinese enterprises, it analyses status quo, trend and the difficulties being confronted with of cross-border M&A for Chinese enterprises. In the core part of the thesis, it gives priority to the study on the cultural differences and cultural conflicts that Chinese enterprises face in the process of cross-border M&A. The paper makes thorough analysis of differences between Chinese and western corporate culture and expatiates on characteristics of Chinese corporate culture. What's more it puts forward suggestions for the management of corporate culture conflicts that is facing cultural differences squarely, building new corporate culture combining with two sides'merits and receiving cross-culture training. Furthermore the thesis puts great emphasis on the research of the strategy of cross-cultural integration. It expounds many problems of cultural integration strategies, such as the bases, principles, modes, processes, tactics and son on. Cultural integration tactics discuss in the thesis includes the following points. That is making all-round assessment of culture differences and compatibility of both sides before merger activities, realizing a fusion of culture in the process of M&A, choosing appropriate modes after making acquisition decision, rebuilding corporate culture and doing supporting jobs after M&A.On the basis of the above, it finally analyses in depth two cross-cultural integration cases of TCL and Lianxiang. In the light of their experiences and lessons it hopes to serve for cross-border merger activities in China.